Stock Name: Frasers Comm
Company Name: FRASERS COMMERCIAL TRUST
DBS Vickers Securities in a Sept 12 research report says: "Performance portfolio has improved remarkably compared to the last crisis with occupancy standing at a high of 98% and signing rents moving up nicely.
"Meanwhile, its balance sheet has improved with gearing at 37% and the imminent refinancing that is likely to lower all-in interest cost by 50-100 bps. The recent approval for an outline planning permission (OPP) to redevelop KeyPoint as well as possible asset enhancement plans at China Square Central (CSC) upon expiry of the master lease in Mar 2012 should further help to optimize portfolio yield.
"At 0.61x P/BV NAV, FCOT's implied property yield is significantly higher than the current book cap rates. FY11/12F yields of 7.4-7.8% are also much higher than its peers at 5.6%-6.6%.unchanged DCF-backed target price of $1.05. MAINTAIN BUY."
Company Name: FRASERS COMMERCIAL TRUST
| Research House: DBS Vickers | Price Call: BUY | Target Price: 1.05 |
DBS Vickers Securities in a Sept 12 research report says: "Performance portfolio has improved remarkably compared to the last crisis with occupancy standing at a high of 98% and signing rents moving up nicely.
"Meanwhile, its balance sheet has improved with gearing at 37% and the imminent refinancing that is likely to lower all-in interest cost by 50-100 bps. The recent approval for an outline planning permission (OPP) to redevelop KeyPoint as well as possible asset enhancement plans at China Square Central (CSC) upon expiry of the master lease in Mar 2012 should further help to optimize portfolio yield.
"At 0.61x P/BV NAV, FCOT's implied property yield is significantly higher than the current book cap rates. FY11/12F yields of 7.4-7.8% are also much higher than its peers at 5.6%-6.6%.unchanged DCF-backed target price of $1.05. MAINTAIN BUY."
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